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A Note on the Ethical Implications of the Stern Review on the Economics of Climate Change

The Stern Review on the economics of climate change adopts two interesting elements in its calculation of the costs and benefits of climate change mitigation. First is a "global-welfarist" approach that values the utility of the world's people (now and into the future) equally and sets global utility maximization as the correct goal for policy. Second is an assumption of a declining marginal utility to income. Consistent application of the global-welfarist approach and the declining marginal utility of income together would demand an urgent process of global income redistribution. In the long term, this might see the richest 10% of the world's population facing an average redistributive tax rate in the region of 82%.

Key Words: Stern Review • climate change • poverty • ethics

References

• Dasgupta, P. (2006). Comments on the Stern Review's economics of climate change. Available from http://www.econ.cam.ac.uk/faculty/dasgupta/STERN.pdf
• Dikhanov, Y. (2005). Trends in global income distribution, 1970-2000, and scenarios for 2015. Human Development Report Office occasional paper. New York: United Nations Development Program, Human Development Report Office.
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• Nordhaus, W. (2007). The Stern Review on the economics of climate change. Retrieved August 29, 2007, from http://nordhaus.econ.yale.edu/stern_050307.pdf
• Pritchett, L. (2004). Comments. In S. M. Collins & C. Graham (Eds.), Brookings Trade Forum 2004 (pp. 24-35). Washington, DC: Brookings Institution.
• Stern, N. (2006). Stern Review: The economics of climate change. London: UK Treasury. Available from http://www.hm-treasury.gov.uk/independent_reviews/stern_review_economics_climate_change/sternreview_index.cfm
• Tol, R.S.J. (2006). The Stern Review of the economics of climate change: A comment. Available from http://www.fcpp.org/pdf/CritiqueofSternReport.pdf

The Journal of Environment & Development, Vol. 16, No. 4, 432-440 (2007)
DOI: 10.1177/1070496507308576


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This Article Abstract Free Full Text (Free PDF) Free Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via Google Scholar Citing Articles via Scopus Google Scholar Articles by Kenny, C. Search for Related Content Social Bookmarking                         What's this?